These banks are giving more opportunity to earn on fixed deposits, know how much interest is being received
New Delhi. Fixed deposits are one of the most popular schemes used by Indians for savings. Even for the purpose of tax-saving under Section 80C of the Income Tax Act 1961, many people prefer tax-saving fixed deposits over other instruments like PPF, ELSS, ULIP, NPS, which is better due to convenience and guaranteed returns. Provide benefits. A tax-saving FD can save up to Rs 1,50,000 in a financial year. The point worth mentioning here is that tax-saving FDs differ from normal FDs in various calculations.
Silent features of tax saving FD
1) Tax-saving fixed deposits come with a lock-in period of five years, before which you cannot withdraw your money.
2) Only resident individuals and Hindu undivided families can open these deposits.
3) Tax-saving FDs can be opened in single or joint names. In case of joint holding, only the first holder can claim tax benefit under Section 80C.
4) One can opt for monthly / quarterly / annual interest payment option on these FDs. You can also choose the compounding option in which the interest earned will be reinvested.
5) Interest earned on tax-saving fixed deposits is taxable. The interest amount gets added to your annual income and will be taxable as per your income tax slab. Interest payable is calculated on a quarterly basis only.
6) Banks deduct TDS (tax-deductible at source) at the rate of 10 years on the annual interest earned on these FDs. If you are exempt to pay tax, you will be required to file Form 15Tr / में at the beginning of the financial year with the bank. need to deposite.
7) Tax-saving FDs can be opened through any public or private sector banks except co-operative banks and rural banks.
8) The 5-year deposit of the post office is also eligible for deduction under Section 80C.
9) You can neither withdraw prematurely nor take a loan against tax-saving fixed deposits.
10) The interest rates offered on these deposits vary with banks. While large banks such as State Bank of India offer the lowest rates on tax-saving deposits, some small banks in the private sector offer attractive rates on these deposits.
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Which banks are getting interest on FD
|Name of bank||FD interest rate (in percent)|
|AU Small Finance Bank||6.50|
|Karur Vysya Bank||5.65|
|Ujjivan Small Finance Bank||5.55|